International Isotopes Inc. Announces 2009 Year End Financial Results
IDAHO FALLS, Idaho, April 1 /PRNewswire-FirstCall/ — International Isotopes Inc. (OTC Bulletin Board: INIS) announces the financial results for fiscal year ended December 31, 2009.
Total revenue in 2009 was $6,122,844 compared to $5,602,443 in 2008, which represents an increase of $520,401 or 9%. The overall increase in revenue was primarily the result of increases in sales in three business segments: Cobalt, Radiochemical Products, and Transportation.
For 2009, Cobalt Product sales (which includes bulk cobalt sales) accounted for approximately 36% of total revenue, as compared to 29% in 2008. In 2009, bulk cobalt sales account for approximately 44% of total Cobalt Product sales. Fluctuations in bulk cobalt sales can create large variations in period to period comparisons. The following table presents a year to year comparison of total revenue by segment, as well as a year to year comparison, of total revenue including and excluding bulk cobalt sales. We believe the total revenue excluding bulk cobalt sales provides meaningful information to investors because of the large period-to-period fluctuations in bulk cobalt sales. However, this information has limitations as an analytical tool and you should not consider it in isolation or as a substitute for total revenue including bulk cobalt sales.
Year To % of Total Year to % of Total Date Sales Date Sales Sale of Product 2009 2009 2008 2008 --------------- ---- ------------------ ---- Radiochemical Products $1,714,529 28% $1,379,906 25% Cobalt Products (including bulk cobalt sales) 2,180,445 36% 1,616,020 29% Cobalt Products (excluding bulk cobalt sales) 1,215,580 24% 1,127,764 22% Nuclear Medicine Standards 1,800,935 29% 1,864,099 33% Radiological Services 239,722 4% 634,201 11% Flourine Products 878 0% 0 0% Transportation 186,335 3% 108,217 2% Corporate revenue 0 0% 0 0% ---------- --------------- --- Total Segments (including bulk cobalt sales) $6,122,844 100% $5,602,443 100% ---------- --------------- --- Total Segments (excluding bulk cobalt sales) 5,157,979 100% 5,114,187 100% --------- --------------- ---
During 2009, the Company recorded a significant write-down in cobalt inventory. This write-down totaled $740,719 and was incurred due to removing numerous targets from continued irradiation in the U.S. Department of Energy’s reactor because of their level of activity. This adjustment is unusual with regard to the amount of material removed from production, is not indicative of anticipated future trends, and does not represent a reduction in planned cobalt production volumes in the future.
Sales of radiochemical products accounted for approximately 28% of our total sales revenue in 2009 and increased by approximately 24% to $1,714,529, as compared to $1,379,906 in 2008. As in prior years, increased sales performance in this segment was driven largely by increases in our sales of iodine-131.
Nuclear Medicine Standards
Sales of nuclear medicine standards accounted for approximately 29% of our total sales revenue in 2009. Sales in this segment decreased by approximately 3% to $1,800,935 in 2009, as compared to $1,864,099 in 2008. This small decrease is believed to be the result of the nationwide recession, significant cuts in health care reimbursement, and new laws affecting outpatient imaging.
Net loss for 2009, increased approximately 114% to $4,633,298, driven primarily by the Company’s expenses for the proposed uranium de-conversion and fluorine extraction facility and the write-down of cobalt inventory. Gross profit decreased from 49% in 2008, to 33% in 2009, and was primarily attributable to the write-down in cobalt inventory of low activity material that was determined to have reduced marketability, and sales increases in lower margin products and product material cost increases. Operating costs, exclusive of research and development expense, decreased approximately 9% in 2009, as a result of measures taken in overall operational management of the core business segments. Including research and development expense in total operating expense, overall operating costs increased by approximately 37%. The significant increase in Research and Development expense is a result of costs associated with the planned uranium de-conversion facility. In 2009, Research and Development costs, for that project increased by $2,207,039, to $2,609,834, as compared to $402,795 in 2008.
Steve Laflin, President and CEO said, “In 2009, we continued to build our various business segments, make investments into facilities and infrastructure, launch new products, and enter into new agreements we believe will increase our future revenue. Broadly defined, our business strategy is to continue to build our reputation as a leader in the nuclear medicine, and nuclear products industries. We remain dedicated to our core business segments even as we pursue our long range business strategy to construct the nation’s first commercial depleted uranium de-conversion and fluorine extraction process facility. Progress on this project in 2009, has been significant. During the year we issued a conceptual design report for the facility, completed an exhaustive site selection process that resulted in our selection of a site location near Hobbs, New Mexico, completed an agreement with the New Mexico Environment Department, and prepared and submitted a license application with environmental report to the Nuclear Regulatory Commission.”
Laflin went on to note, “Our continued expenditures on this project are contingent upon our ability to raise additional capital. We expect the rate of expenditure on the project to significantly accelerate in 2010 as we begin to incur additional expense for the NRC review of our license application, process the necessary New Mexico state permits, and increase engineering subcontracts to begin formal design and construction planning. This project represents a significant commercial opportunity for the Company and our shareholders. It will continue to require continued significant capital investment by the Company.”
International Isotopes Inc. Year Ended Dec. 31 -------------------------- 2008 2009 Change $'s Change % ---- ---- ---------- -------- Sales of Products $5,602,443 $6,122,844 $520,401 9% Gross Profit $2,722,604 $2,049,083 ($673,521) (25%) Total Operating Expense $4,827,985 $6,626,059 $1,798,074 37% Operating Loss Before Other Expense ($2,105,381) ($4,576,976) $2,471,595 117% Other Expense ($61,586) ($56,322) ($5,264) (8%) Net Loss ($2,166,967) ($4,633,298) $2,466,331 114% Net (Loss) Per Common Share ($0.01) ($0.02) Weighted Ave. Sh. Outstanding 276,486,713 290,060,471
About International Isotopes Inc.
International Isotopes Inc. manufactures a full range of nuclear medicine calibration and reference standards, high purity fluoride gases, and a variety of cobalt-60 products such as teletherapy sources. The Company also provides a wide selection of radioisotopes and radiochemicals for medical devices, calibration, clinical research, life sciences, and industrial applications and provides a host of analytical, measurement, recycling, and processing services on a contract basis to clients
International Isotopes Inc. Safe Harbor Statement
Certain statements in this press release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the statements with respect to the Company’s goals with respect to future trends in cobalt production, economic impact to our business attributable to the economy, our plans for investments in facilities and infrastructure, our ability to launch new products, and enter into new agreements, forecasts of future revenues, rates of expenditure on the depleted uranium project, and the significance of the commercial opportunity that project provides to the Company. Information contained in such forward-looking statements is based on current expectations and is subject to change. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of International Isotopes Inc. to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Other factors, which could materially affect such forward-looking statements, can be found in International Isotopes Inc.’s filings with the Securities and Exchange Commission at www.sec.gov, including our annual report on Form 10-K for the year ending December 31, 2009. Investors, potential investors, and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and International Isotopes, Inc. undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.
SOURCE International Isotopes Inc.